Unprecedented Era in Higher Education Financial Stability

July 12th, 2010

I recently read an article related to the “unprecedented” budget cuts facing the LSU System.  System President John Lombardi warned the Chancellors of the various campuses that the system is looking at a 23.28 percent cut across the board unless the projected state budget for 2011-2012 changes.  A primary reason for the heightened focus is the expiration of the Stimulus Act funding for higher education that provided nearly $300 million to the state colleges and universities in Louisiana alone.  According to the System’s press release, the System’s colleges and universities had already absorbed $150 million in cuts over the previous two years.  In the past, some of those cuts have been absorbed by tuition increases, but proposed state tuition increases must be approved by Louisiana’s legislature – a prospect that becomes unpredictable due to the current political environment.  Louisiana’s situation is not unique; their press release happened to be readily at hand, but there are equally challenging circumstances being dealt with by many state legislatures throughout America.
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If Financing Higher Education Was Only that Simple

October 15th, 2009

I read an editorial from the Pasadena, California Star News entitled “Higher Ed Needs a Redo.”  The article discusses the premises, philosophy, and outcomes of California’s Master Plan issued in 1960 and states that it’s time for a revision to a document that is approaching 50 years old.  The article mentions the 30+ percent tuition increase at the University of California and the tuition increases at the California State University System (CSU) that have reached the point where students pay more in tuition than the state pays.  The writer notes that this is a long way from the original Master Plan which guaranteed a free education to anyone qualified for admission.   The editorial notes that during the recession of the 1990’s, CSU’s enrollment decreased by 50,000 and it took the state years to recover.  Lastly, the California House and Senate have agreed to meet to discuss a revision of the Master Plan on its 50th anniversary.  The timing is fortuitous given the budget crisis.

As I read this article, seemingly the 500th that I’ve read about California’s crisis in higher education funding, it reminded me of the data available through the annual State Higher Education Finance report issued by the State Higher Education Executive Officers (SHEEO).  On August 9, 2009, SHEEO issued their sixth report which is for FY 2008.  I highly recommend this report for anyone interested in understanding the funding of public higher education in America.  What’s important to note about this report is that it shows positive progress in higher education (since it’s for the 2007-2008 funding year) but notes that 2009 and 2010 will probably be different given the impact of the recession.  Supplementary tables are maintained by the State Higher Education Executive Officers (SHEEO) on their website at www.sheeo.org.

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